The business model journey: From idea to invention to sales
So, you have an idea or already have the product but you’re not sure how to establish your business model to make the sales. Well, you’ve come to the right place!
Ajay Agrawal, the Peter Munk Professor of Entrepreneurship at the Univeristy of Toronto’s Rotman School of Management, gave this week’s lecture on how to create a business model. Ajay pointed out three areas all entrepreneurs need to hash out in order to establish how they will transition from taking an idea to making a product to making sales.
Work through the structures of your industry to understand the power dynamics involving suppliers, distributors, competitors and other actors in the ecosystem in which your product exists. Addressing the power dynamics influences the way in which a business model is made.
What are the incentives of all the players in your ecosystem? What are the ambitions for each player and how can you address all of them in your business model?
3. Potential Customers
Who are your potential customers? Are there multiple types of customers? Can you attract a new set of customers by adding to the products you provide?
Ajay also provided two key resources for entrepreneurs to read:
- David Teece (1986) “Profiting from Technological Innovation,” Research Policy
- Gans, J and Stern, S. (2003) “The Product Market and the Market for ‘Ideas’: Commercialization Strategies for Technology Entrepreneurs,” Research Policy, 32(2), pp 333-50.
Downloads and Resources:
- Class Summary: Building a Business Model
- Video: Building a Business Model
- Presentation: Building a Business Model
- Articles: 1. Business models, 2. Business model design
- Join the Facebook Group: Entrepreneurship 101
- Register to get weekly updates
Entrepreneurship 101 2010/11 – Week 8 – Building a Business Model from MaRS Discovery District on Vimeo.
Entrepreneurship 101 – Building A Business Model
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Amrutha works with MaRS Media to deliver high quality digital assets to clients for their marketing and business needs. Previously she was the Senior Program Associate for the Business Acceleration Program and provided support to entrepreneurs through the Regional Innovation Centres in the ONE network. She is also the Chair of the MaRS Social Committee and leads the team on organizing various events for MaRS staff. See more…